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Your daughter is considering two options for her career. The first is to go to law school at Harvard. You estimate this will cost you

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Your daughter is considering two options for her career. The first is to go to law school at Harvard. You estimate this will cost you $500,000 and you will have to pay this in one lump sum 5 years from today. Her altemative is to go to Europe to a musical conservatory school. For this she will need a violin worth $100,000 which you need to buy now. The cost of her schooling will be $100,000 per year for 3 years starting in 2 years. That is, in 2 years you will need $100,000, another $100,000 in 3 years and another $100,000 in 4 years. If the interest you can achieve is 10% compounded annually which option requires less money if you invest today to cover these educational expenses? Answer Place only your final answer in the box. Show your work below (you must show all calculations used to derive you answers)

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